hand money question

[prplegal]

No, nothing about 100% fiinancing.

 

[prplegal]

more..

Seller is now threatening litigation unless buyer signs release for hand money.

 

[nextwife]

Is your financing continguency something like the one below (this is the standard, fill in the blank, preprinted loan continguency in the WI state bar residential offer to purchase).

iF SO, NOT ONLY ARE YOU ONLY OBLIGATED AT A CERTAIN INTEREST RATE OR BETTER, but you may ALSO also limited in the amount of points you must pay to obtain that rate. I never see offers that don't BOTH establish max rate and max fees to which buyer is obligated under the contract, unless specifically crossed out. Your state may be different, but double check YOUR contract for such language:


THE FINANCING CONTINGENCY PROVISIONS AT LINES 149 -163 ARE A PART OF THIS OFFER IF LINE 149 IS MARKED,
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SUCH AS WITH AN ''X''. THEY ARE NOT PART OF THIS OFFER IF LINE 149 IS MARKED N/A OR IS NOT MARKED.
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FINANCING CONTINGENCY:
This Offer is contingent upon Buyer being able to obtain a _____________________________
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first mortgage loan commitment as described below, within _____ days of acceptance of this Offer.
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The financing shall be in an amount of not less than $ ___________________ for a term of not less than ________ years,
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amortized over not less than ______ years. Initial monthly payments of principal and interest shall not exceed $ __________________.
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Monthly payments may also include 1/12th of the estimated net annual real estate taxes, hazard insurance premiums, and private
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mortgage insurance premiums. The mortgage may not include a prepayment premium. Buyer agrees to pay a loan fee not to
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exceed _______% of the loan. (Loan fee refers to discount points and/or loan origination fee, but DOES NOT include Buyer's
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other closing costs.) If the purchase price under this Offer is modified, the financed amount, unless otherwise provided, shall be adjusted
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to the same percentage of the purchase price as in this contingency and the monthly payments shall be adjusted as necessary to maintain
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the term and amortization stated above. CHECK AND COMPLETE APPLICABLE FINANCING PROVISION AT LINE 159 OR 160.
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FIXED RATE FINANCING: The annual rate of interest shall not exceed ________%.
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ADJUSTABLE RATE FINANCING: The initial annual interest rate shall not exceed _______ %. The initial interest rate shall
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be fixed for ____________ months, at which time the interest rate may be increased not more ________% per year. The
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maximum interest during the mortgage term shall not exceed _________%. Monthly payments of principal and interest may
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be adjusted to reflect interest changes.
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LOAN COMMITMENT: Buyer agrees to pay all customary financing costs (including closing fees), to apply for financing promptly, and
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to provide evidence of application promptly upon request by Seller. If Buyer qualifies for the financing described in this Offer or other
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financing acceptable to Buyer, Buyer agrees to deliver to Seller a copy of the written loan commitment no later than the deadline for loan
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commitment at line 150. Buyer's delivery of a copy of any written loan commitment to Seller (even if subject to conditions) shall satisfy
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the Buyer's financing contingency unless accompanied by a notice of unacceptability. CAUTION. BUYER, BUYER'S LENDER AND
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AGENTS OF BUYER OR SELLER SHOULD NOT DELIVER A LOAN COMMITMENT TO SELLER WITHOUT BUYER’S PRIOR
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APPROVAL OR UNLESS ACCOMPANIED BY A NOTICE OF UNACCEPTABILITY.
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SELLER TERMINATION RIGHTS: If Buyer does not make timely delivery of said commitment, Seller may terminate this Offer if
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Seller delivers a written notice of termination to Buyer prior to Seller's actual receipt of a copy of Buyer's written loan commitment.
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FINANCING UNAVAILABILITY:
If financing is not available on the terms stated in this Offer (and Buyer has not already
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delivered an acceptable loan commitment for other financing to Seller), Buyer shall promptly deliver written notice to Seller of same
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including copies of lender(s)' rejection letter(s) or other evidence of unavailability. Unless a specific loan source is named in this
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Offer, Seller shall then have 10 days to give Buyer written notice of Seller's decision to finance this transaction on the same terms
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set forth in this Offer, and this Offer shall remain in full force and effect, with the time for closing extended accordingly. If Seller's
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notice is not timely given, this Offer shall be null and void. Buyer authorizes Seller to obtain any credit information reasonably
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appropriate to determine Buyer's credit worthiness for Seller financing.